Learn how to find a niche in your ideal market and start a successful baking business with this helpful article. You will discover tips and advice on how to research your market, understand your customer's needs, and compete with larger brands.
Starting a small business takes more than just a great idea. Many creatives come up with business ideas, but they don’t do the appropriate amount of reach which leads their business to eventually fail. In this post, I’m sharing a few key steps to help you research and find a niche that both interests you and meets the needs of your market.
First, you need to find a market that is not too small or not too large. This might be easier said than done if you live in a major city. You can narrow down to serving your particular neighborhood. This could also be a bit challenging if there is already a good number of bakers in your community. To find the “right size” market, you want to look for an area that is big enough to make a profit but small enough that your products and services can compete with larger brands that offer the same types of items.
Two common mistakes that new small business owners make when searching for the right market is targeting a market that is too broad and where the niche is already heavily exploited. What you choose to sell should be of interest to enough potential customers in your market for you to make money. Otherwise, your business will not succeed.
When nailing down your niche, reflect inward. What is your unique area of expertise? What do you like to do? What work experience do you have? What is your creative background? What excites you? What are you good at? What is your educational background?
Your existing skills and your interests should guide your decision when it comes to selecting a niche. If you have many interests and can’t figure out which would be the most financially beneficial, dig a little deeper into your research. Think about how you can convert your education, talents and work experience into a profitable business idea. Do a deep dive into the services and products that are available in your market and find a “YOU sized whole” in the market. Then, use that as an opportunity to meet the needs of your market.
The easiest place to start your research is by digging around online. Consider your local area and work your way outwards. If you live in a small neighborhood or town, this research may be a bit easier than if you live in a major market or metropolitan area. Create a list of words that describe the type of business you believe will help your ideal market. Then, conduct a search using those keywords and your city/state. From there, study the businesses that already exist and find out more about their service and product offerings. While you’re doing this search, think through what you’d like to offer in your business and think of ways that you can stand out from these businesses which may ultimately become your competition.
Keep in that just because you identify “a gap in the market” that doesn’t mean there is a large enough need for that product or service in the area that you’ve selected. Continue on in your research by dipping your toe in the market. Consider hosting smaller events to showcase your products and services to see if there is any interest or enough clients who would support you new business venture. Then, make the decision to scale or change your business idea as needed.
Conclusion
Entrepreneurship isn’t a cut and dry process. It does take a bit of patience and strategy to get started and find success. However, if you take the time to research, evaluate and execute then you can build a business that meets the needs of your community while allowing you the freedom of running your own business.
Cyd N. Mitchell
Business Blogger, Retail Bakers of America
Cydni N. Mitchell (aka Cyd) is a Bakery Consultant and the Sweet Business Coach behind Sweet Fest®. Based in Atlanta, GA, Sweet Fest® is an online company that supports the business needs of the Sweet Community in the areas of professional development, marketing, branding and web design.
By trade, Cyd is an accountant & financial analyst with a Masters from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. She is the Founder of the Sugar Coin Academy, an online business academy for business owners in the baking and sweets industry, and she is also the organizer of The Ultimate Sugar Show, Georgia’s Largest Annual Baking and Sweets Expo in Atlanta. She is also the Business Blogger for the Retail Bakers of America.
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